Amazon has entered into an agreement with Talen Energy to secure 1,920 megawatts (MW) of nuclear energy. The deal, announced on June 14, 2025, aims to power Amazon Web servers and artificial intelligence (AI) data centers located in Pennsylvania through 2042.
According to Talen Energy, the energy will be sourced from their Susquehanna nuclear facility. In addition to the energy supply agreement, Amazon and Talen Energy intend to explore the potential of small-modular nuclear reactor (SMR) technology.
The power will be delivered to Amazon through the grid via PPL Electric Utilities, an energy transmission company. Christine Martin, president of PPL Electric Utilities, emphasized the benefits of this arrangement, stating, “Connecting large load customers like data centers to our transmission system helps lower the transmission component of energy bills for all customers, as large load customers pay significant transmission charges on our network.”
This move by Amazon highlights the increasing demand for substantial energy resources to support the power-intensive needs of AI and high-performance computing data centers. AI development is increasingly viewed as a crucial area for global leadership.
The trend of tech giants turning to nuclear energy to fuel their AI ambitions is gaining momentum. In September 2024, Microsoft finalized a deal with Constellation Energy Corporation to revive the Three-Mile Island nuclear site. This agreement included the provision of 835 megawatts of nuclear power to Microsoft, with the goal of bringing the facility back online by 2028.
More recently, on June 3, Meta announced a 20-year agreement with Constellation to purchase 1.1 gigawatts of nuclear power to support its AI facilities.
These shifts towards nuclear energy have garnered support from various U.S. lawmakers and political figures, who advocate for innovation in AI to maintain a competitive edge. Former United States President Donald Trump has consistently urged increased investment in nuclear power production to meet the growing energy demands of AI, cryptocurrency mining, and other high-performance computing applications.
The arrangement between Amazon and Talen Energy involves the energy being supplied through the grid rather than directly from the nuclear plant. This approach is designed to support the energy grid’s maintenance through service fees paid by Amazon. The International Atomic Energy Agency (IAEA) projects a continued growth in global nuclear energy capacity through 2050, underscoring its importance in meeting future energy demands.
Amazon’s investment in Pennsylvania extends beyond this energy deal. The company has also committed to investing $20 billion in the state to build AI data centers.
The deal with Microsoft and Constellation, which aims to reopen the Three-Mile Island nuclear site, specifies that the 835 megawatts of nuclear power will be delivered to the tech company, with the goal of bringing the facility online by 2028. Meta’s agreement to purchase 1.1 gigawatts of nuclear power from Constellation spans over 20 years, reflecting a long-term commitment to nuclear energy as a power source for its AI facilities.
The growing trend of tech companies embracing nuclear energy underscores the substantial energy requirements of AI and the need for reliable and sustainable power sources to support its development and deployment. The deals emphasize a broader recognition of nuclear energy as a viable solution for meeting the escalating power demands of advanced technologies, while also aligning with sustainability goals.
